Law Firm Leadership and Communications

Confronted by increased competition and changes in the way expense conscious corporate clients procure legal services, law firms are responding by building capacity ' increasing their size through aggressive lateral hiring and acquisition. It is an appropriate response; driven by the market perception that in order to compete today for global corporate business, it is imperative that the modern law firm be large enough to handle both commoditized work as well as provide high end counsel, deep enough to handle any and all matters that a company may face, and streamlined enough to take advantage of technological and other economies of scale. But the myriad of market-based arguments that enable the creation of these large partnerships with hundreds of partners beg the question: 'Now that we've built the infrastructure, how do we truly distinguish ourselves in a manner that actually confirms these assumptions and secures the business?'

Perception Is King

The answer lies in recognizing that large law firms are perceived within two paradigms, simultaneously. First is from the traditional perspective of the professional service practitioner, who provides competent advice and counsel based upon a specific area of expertise, underlined by personal reputation. For many, this remains the dominant conception, with many lawyers acting within the law firm partnership as if they were solo practitioners or small boutiques sharing office space. In a sense, this is the perspective of the lawyer who chooses to operate within a structure of convenience ' a structure jettisoned when the risk/reward ratio becomes unfavorable.

The second paradigm is from the institutional perspective, where the large law firm is no longer the stereotypical traditional partnership but rather acts more in the fashion of a corporate entity, with its own identity and reputation, acting as a branded player within the global market for legal services. Under this construction, the individual attorney is subordinate to the whole and becomes, in essence ' and uncomfortably for most ' part of the sales machinery of the firm. One manifestation of this paradigm is the growing emphasis on legal marketing to support the
diversified revenue streams ' the in-dividual attorney's ability to bring in paying clients ' for the firm.

How successful a firm is may depend in large measure on how it manages to harmonize these perspectives. One thing is certain. Lawyers are expected, and are often judged, on whether they can generate increasing revenue for the firm ' a skill not taught in law school and an anathema for many who view such a defined sales role as unprofessional or even unethical.

The good news is that there are ways to gain the advantages that size and corporate structures offer without compromising the value of the individual attorney or professional integrity. In a sense, it requires thinking about the firm not as a limited convenience for the partner, but rather as an institution that is greater than the sum of its parts. One that encourages professional excellence, enables new approaches to effectively serve clients, and enhances the profession in ways not heretofore possible. It requires finding synergies that do not exist in small traditional firms and exploiting them for the benefit of the clients, employees and partners.

Synergy of Perception

It is too limiting to impute old notions of partnership to these new large entities, just as it is too simplistic to treat these firms like corporations manufacturing a commodity. The emerging view is to recognize that neither captures the potential that these new firms offer. Creativity and leadership are needed to develop ways to mine and bundle assets of the firm, and then brand and market those assets in ways that do not commoditize the work or the individual attorney.

One idea, for example, is borrowing best practices from other highly successful professional service firms, such as creating centers of leadership (within practice groups, subject matter or industry groupings) that can serve as a foundational asset to build and market around. Such an asset permits individual lawyers to use the vehicle to enhance their reputations, and establishes a vision for the firm as expert and leader in the specific practice, industry or subject matter. Such centers also become mechanisms ' platforms ' to communicate the firm's aspiration, as well as its value proposition. This is a different approach (not necessarily a substitute approach), to continuously pitching the strengths of any one attorney or the undifferentiated benefits of the whole firm. Finding creative ways to see embedded firm value is critical to finding ways to distinguish the firm and gain market share.

More importantly, perhaps, is that ' as in any corporate environment ' managing partners must demonstrate and communicate leadership based on a real vision for the future. Too many managing partners achieve their positions as consensus candidates, rather than as the advocate for an affirmative vision for the future of the firm.

When asked, few would deny the importance of such leadership. Yet too few really hold out a vision for the firm within an evolving business and professional climate. Most
managing partners, particularly those of a certain size, are consumed with the day-to-day challenges of business generation or administration, or the prospecting, negotiation, acquisition and integration of new lawyers. Rather few spend time or energy working toward a conception of what the new firm should become. Indeed, the only time there is a break from the management demands of the firm is when such daily processes are interrupted, intermittently, or to fend off poachers to protect one's own attorneys from competitors employing more or less the same strategy.

An articulated vision for the industry and firm is not another marketing initiative. Leadership is more than the routinely expressed goal of building capability to compete against other firms. Leadership is about insight into where the industry is heading; how legal service itself is changing to accommodate changing markets; how the procurement of legal service is affecting execution. It is about fairly and objectively assessing the firm's strengths and weaknesses. And it is about constructing a persuasive case for leading and giving real direction to the firm. Ultimately, it is about communicating such a vision in a manner that can inspire partners to build the firm rather than judge it, motivate associates to want to stay and be a part of something special, and persuade clients to want to hire it.

Seeing the Future

Marketing, branding and public relations ' tactics routinely em-ployed by corporate business ' are eagerly adopted by law firm management these days, but true areas of differentiation are hard to find and rarely pursued. Part of the reason is that all firms say they are recommitting themselves to client service, technology improvements and expert teams dedicated to the work. Firm leadership should see these efforts as strategic elements of a larger picture, not as the larger picture itself.

Gaining consensus around a leadership initiative is not easy. Despite rhetoric to the contrary, 500 to 1000 member law firms are not all the same. The future of the legal industry as it relates to the changing corporate environment will be shaped by those who can visualize different futures, can articulate the challenges, can affirmatively propose a specific direction to take and can build consensus to get there. And newly minted lawyers are looking for such direction and leadership.

Confronted by increased competition and changes in the way expense conscious corporate clients procure legal services, law firms are responding by building capacity ' increasing their size through aggressive lateral hiring and acquisition. It is an appropriate response; driven by the market perception that in order to compete today for global corporate business, it is imperative that the modern law firm be large enough to handle both commoditized work as well as provide high end counsel, deep enough to handle any and all matters that a company may face, and streamlined enough to take advantage of technological and other economies of scale. But the myriad of market-based arguments that enable the creation of these large partnerships with hundreds of partners beg the question: 'Now that we've built the infrastructure, how do we truly distinguish ourselves in a manner that actually confirms these assumptions and secures the business?'

Perception Is King

The answer lies in recognizing that large law firms are perceived within two paradigms, simultaneously. First is from the traditional perspective of the professional service practitioner, who provides competent advice and counsel based upon a specific area of expertise, underlined by personal reputation. For many, this remains the dominant conception, with many lawyers acting within the law firm partnership as if they were solo practitioners or small boutiques sharing office space. In a sense, this is the perspective of the lawyer who chooses to operate within a structure of convenience ' a structure jettisoned when the risk/reward ratio becomes unfavorable.

The second paradigm is from the institutional perspective, where the large law firm is no longer the stereotypical traditional partnership but rather acts more in the fashion of a corporate entity, with its own identity and reputation, acting as a branded player within the global market for legal services. Under this construction, the individual attorney is subordinate to the whole and becomes, in essence ' and uncomfortably for most ' part of the sales machinery of the firm. One manifestation of this paradigm is the growing emphasis on legal marketing to support the
diversified revenue streams ' the in-dividual attorney's ability to bring in paying clients ' for the firm.

How successful a firm is may depend in large measure on how it manages to harmonize these perspectives. One thing is certain. Lawyers are expected, and are often judged, on whether they can generate increasing revenue for the firm ' a skill not taught in law school and an anathema for many who view such a defined sales role as unprofessional or even unethical.

The good news is that there are ways to gain the advantages that size and corporate structures offer without compromising the value of the individual attorney or professional integrity. In a sense, it requires thinking about the firm not as a limited convenience for the partner, but rather as an institution that is greater than the sum of its parts. One that encourages professional excellence, enables new approaches to effectively serve clients, and enhances the profession in ways not heretofore possible. It requires finding synergies that do not exist in small traditional firms and exploiting them for the benefit of the clients, employees and partners.

Synergy of Perception

It is too limiting to impute old notions of partnership to these new large entities, just as it is too simplistic to treat these firms like corporations manufacturing a commodity. The emerging view is to recognize that neither captures the potential that these new firms offer. Creativity and leadership are needed to develop ways to mine and bundle assets of the firm, and then brand and market those assets in ways that do not commoditize the work or the individual attorney.

One idea, for example, is borrowing best practices from other highly successful professional service firms, such as creating centers of leadership (within practice groups, subject matter or industry groupings) that can serve as a foundational asset to build and market around. Such an asset permits individual lawyers to use the vehicle to enhance their reputations, and establishes a vision for the firm as expert and leader in the specific practice, industry or subject matter. Such centers also become mechanisms ' platforms ' to communicate the firm's aspiration, as well as its value proposition. This is a different approach (not necessarily a substitute approach), to continuously pitching the strengths of any one attorney or the undifferentiated benefits of the whole firm. Finding creative ways to see embedded firm value is critical to finding ways to distinguish the firm and gain market share.

More importantly, perhaps, is that ' as in any corporate environment ' managing partners must demonstrate and communicate leadership based on a real vision for the future. Too many managing partners achieve their positions as consensus candidates, rather than as the advocate for an affirmative vision for the future of the firm.

When asked, few would deny the importance of such leadership. Yet too few really hold out a vision for the firm within an evolving business and professional climate. Most
managing partners, particularly those of a certain size, are consumed with the day-to-day challenges of business generation or administration, or the prospecting, negotiation, acquisition and integration of new lawyers. Rather few spend time or energy working toward a conception of what the new firm should become. Indeed, the only time there is a break from the management demands of the firm is when such daily processes are interrupted, intermittently, or to fend off poachers to protect one's own attorneys from competitors employing more or less the same strategy.

An articulated vision for the industry and firm is not another marketing initiative. Leadership is more than the routinely expressed goal of building capability to compete against other firms. Leadership is about insight into where the industry is heading; how legal service itself is changing to accommodate changing markets; how the procurement of legal service is affecting execution. It is about fairly and objectively assessing the firm's strengths and weaknesses. And it is about constructing a persuasive case for leading and giving real direction to the firm. Ultimately, it is about communicating such a vision in a manner that can inspire partners to build the firm rather than judge it, motivate associates to want to stay and be a part of something special, and persuade clients to want to hire it.

Seeing the Future

Marketing, branding and public relations ' tactics routinely em-ployed by corporate business ' are eagerly adopted by law firm management these days, but true areas of differentiation are hard to find and rarely pursued. Part of the reason is that all firms say they are recommitting themselves to client service, technology improvements and expert teams dedicated to the work. Firm leadership should see these efforts as strategic elements of a larger picture, not as the larger picture itself.

Gaining consensus around a leadership initiative is not easy. Despite rhetoric to the contrary, 500 to 1000 member law firms are not all the same. The future of the legal industry as it relates to the changing corporate environment will be shaped by those who can visualize different futures, can articulate the challenges, can affirmatively propose a specific direction to take and can build consensus to get there. And newly minted lawyers are looking for such direction and leadership.